Maharashtra’s long-envisioned plan to create a new urban and economic hub, often referred to as ‘Third Mumbai’, has moved a step closer to reality with the launch of the Raigad–Pen Growth Centre Project. The Mumbai Metropolitan Region Development Authority (MMRDA) has initiated the project through a joint venture, marking the first planned city within the proposed Third Mumbai region. Conceived as a greenfield public-private partnership, the initiative aims to ease congestion in existing urban centres while laying the foundation for a globally competitive business district.
The Raigad–Pen Growth Centre Project is being developed through a joint venture between MMRDA and Karnala Pen Growth Centre Limited. It is positioned as a cornerstone of Maharashtra’s long-term urban development strategy, focused on decentralising population and economic activity away from saturated parts of the Mumbai Metropolitan Region. By creating a new, planned city from the ground up, the state hopes to address infrastructure constraints, housing shortages and rising costs that have long challenged Mumbai and its surrounding areas.
The project was formally unveiled on the global stage at the World Economic Forum Annual Meeting 2026 in Davos, Switzerland. Announced by Maharashtra Chief Minister Devendra Fadnavis, the initiative was presented as part of a broader investment and reform narrative for the state. The Davos platform also facilitated the signing of multiple memoranda of understanding, signalling interest from global investors and partners. These agreements are expected to bring not just capital, but also advanced technologies, planning expertise and international best practices into the development process.
A key strategic advantage of the Raigad–Pen Growth Centre is its proximity to the Navi Mumbai International Airport, which has recently become operational. This location is expected to significantly enhance the project’s attractiveness for businesses that depend on strong global and domestic connectivity. Improved access to air, road and rail infrastructure is likely to position the new city as a logistics and services hub, complementing Mumbai’s existing economic ecosystem rather than competing with it directly. Legal advisory for the transaction was provided by DSK Legal to MMRDA, while Shardul Amarchand Mangaldas & Co advised Karnala Pen Growth Centre Limited.
In planning terms, the project has been envisioned as a smart, sustainable and mixed-use urban development in Raigad district. It proposes a comprehensive urban framework that includes residential neighbourhoods, commercial districts and social infrastructure. Beyond housing and transport connectivity, the plan incorporates specialised zones such as Edu City and Medi City, along with Global Capability Centres, data centres and innovation clusters. These elements are intended to attract knowledge-driven industries and support high-value employment opportunities.
From an economic perspective, the Raigad–Pen Growth Centre is expected to act as a catalyst for investment across sectors including real estate, technology, logistics and services. By offering relatively lower land costs, modern infrastructure and planned urban amenities, it presents an alternative growth destination to established but increasingly constrained parts of Mumbai. The continued expansion of Global Capability Centres in India, and particularly in Maharashtra, further strengthens the project’s investment case. As part of the Third Mumbai vision, the development reflects the state’s ambition to reshape its urban landscape while reinforcing its position as a leading destination for global capital and enterprise.
Source: Whalesbook
